Kesko plans to discontinue current Kerava logistics centre operations and examines continuation options

KESKO PRESS RELEASE 07.04.2016 AT 09.30 1(1)

Kesko sold Anttila's business operations to investment fund 4K Invest in March 2015 and part of the transaction was an agreement according to which Kesko would produce all logistics services for the department stores and online trade needed by Anttila Oy from the logistics centre in Kerava.

Anttila has decided that it will not extend the agreement with Kesko after the expiry of the term, and despite careful examination, no replacement warehousing operations have been found. For these reasons, Kesko has to start planning the rundown of the logistics centre. At the same time, however, Kesko will continue to examine options for the future of the logistics centre.

Cooperation negotiations on possible workforce reduction will start involving a total of 131 Rautakesko Ltd employees working in the logistics centre. The aim is to find a job in Kesko's other functions for as many of them as possible.

"The logistics centre in Kerava was primarily designed to serve the logistics need of such home and speciality goods trade which Kesko has abandoned in line with its new strategy. In this division, our focus is on the building and technical trade. So far, we have not found replacement warehousing operations for the centre despite careful examination", says Vice President Tommi Kasurinen of Kesko's home improvement and speciality goods trade.

Further information: Vice President Jennie Stenbom, HR and communications, Kesko's home improvement and speciality goods trade, tel. +358 105 322 356

Kesko is a Finnish listed trading sector company. Kesko operates in the grocery trade, the home improvement and speciality goods trade and the car trade. Its divisions and chains act in close cooperation with retailer entrepreneurs and other partners. In 2015, Kesko's net sales totalled €8.7 billion and it employed nearly 20,000 people. Kesko has over 1,500 stores engaged in chain operations in Finland, Sweden, Norway, Estonia, Latvia, Lithuania, Russia and Belarus. Kesko's shares are listed on Nasdaq Helsinki. The company's domicile and main premises are in Helsinki. Kesko is the most sustainable trading sector company in the world (Food and Staples Retailing, The Global 100 Most Sustainable Corporations in the World). www.kesko.fi